In 2024, the Australian Government introduced a 15 per cent minimum tax for large companies.
The laws are based on rules agreed with the OECD Inclusive Framework.
The OECD rules make sure large companies pay an effective tax rate of at least 15 per cent.
Further minor changes need to be made to the law to keep it consistent with the OECD rules.
The changes are based on OECD Administrative Guidance on the rules.
We are consulting on these changes.
The changes:
clarify the operation of Australia’s domestic minimum tax in relation to stateless entities with an Australian nexus
refine the interaction between Australia’s domestic minimum tax and existing consolidation rules
ensure covered taxes are allocated consistent with the allocation of GloBE income for certain entities
ensure that Australia’s domestic minimum tax will function properly
add a foreign currency translation rule.
Related content
- International taxation – global and domestic minimum tax – amending legislation
- International taxation – global and domestic minimum tax – primary legislation
- International taxation – global and domestic minimum tax – subordinate legislation
- Global agreement on corporate taxation: addressing the tax challenges arising from the digitalisation of the economy
